NDIC to Refund Depositors of 96 Failed MFB Recovered Assets. Here in this page are guides and information Nigeria Deposit Insurance Corporation(NDIC) vowed to Settle depositors’ claims after recovering debts from failed microfinance and mortgage banks.
On Monday in a phone call with Mr Alfred Ijah of the NDIC Department of Communication and Public Affairs, NDIC says that there is a winding-up orders for 96 out of 183 microfinance and primary mortgage banks following the withdrawal of their licenses by the Central Bank of Nigeria(CBN) in May 2023. The disclosure occurs at a sensitization seminar with Federal High Court judges in Lagos between Monday and Thursday.
The Managing Director of NDIC, Bello Hassan said the following:
“As at date, the Corporation had obtained Winding up Orders for 96 out of 183 Micro Finance and Primary Mortgage Banks whose licenses were revoked by the CBN in May 2023, in less than one Year of revocation.”
“We recognize the judiciary as one of our critical stakeholders. With this, when cases are brought before them, they can receive accelerated hearing and proclamation of Justice”
Speaking further on the development, Ijah said NDIC’s job does not crystalize without the CBN revoking the license of affected banks that breached some of the laws of the apex bank regulator.
In addition, Ijah adds that the sale of the affected bank assets and the recovering monies owed by debtors is central to the corporation’s ongoing plans to refund depositors of the affected banks.
He said,
“There are different things to be done. If CBN has revoked the license, what it tells you is that we are moving to another phase. We have paid depositors. We have gotten license to wind down officially and legally. Then, we start selling assets,” he added.
He added that though the NDIC does not “have control over” the time frame of carrying out the proper closure of the affected banks as well as settlement of depositors, its step-by-step procedures will ensure timely refunds to depositors.
Views to note on NDIC to Refund Depositors of 96 Failed MFB Recovered Assets
- Ten months ago, Nairametrics reported NDIC saying it has begun the process of payment of depositors in 179 microfinance banks and four primary mortgage banks across the country.
- The commission called on depositors affected by the liquidation to provide alternate bank accounts in commercial banks for their payments.
- The NDIC is the government’s agency responsible for guaranteeing the payment of deposits up to the maximum limit in accordance with its statute in the event of failure of an insured financial institution.